What is FHA’s standard for a Mortgagee’s Quality Control Program?

The Mortgagee must adopt and implement a Quality Control (QC) Program that fully complies with the requirements of Handbook 4000.1 and, where applicable, the additional Multifamily QC requirements outlined in the Multifamily Accelerated Processing (MAP) Guide, 4430.G.
 
A QC Program is the process and written procedures through which the Mortgagee seeks to ensure that its FHA operations and Loan Administration are in compliance with all applicable requirements.  The Mortgagee must maintain and update its QC Program as needed to ensure it is fully compliant with all applicable FHA requirements at all times. 
 
The QC Program must:

  • cover the lifecycle of an FHA-insured Mortgage, including origination, underwriting, closing, endorsement, and servicing functions that are conducted by the Mortgagee;
  • cover all policies and procedures, whether performed by the Mortgagee or outsourced to a contractor, to ensure full compliance with FHA requirements for Loan Administration; and
  • provide the Mortgagee’s management with information sufficient to adequately monitor and oversee the Mortgagee’s compliance, and measure performance as it relates to the Mortgagee’s FHA mortgage activity.
 
For additional information see Handbook 4000.1 V.A.1 at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-01045